UK's FTSE 100 steadies after worst week since April as miners gain

By Reuters News

Oct 5 (Reuters) - The UK's FTSE 100 rose on Monday, steadying after its steepest drop since April last week, as mining shares led gains and oil prices stayed in check.

The blue-chip FTSE 100 index .FTSE rose 0.19% to 10,481.20 points at 1018 GMT. The midcap FTSE 250 .FTMC dipped 0.32% to 24,114.77 points.

  • Precious metal miners .FTNMX551030 rose 0.55% as prices of spot gold and silver jumped 0.35% and 2.06%, respectively.GOL/

  • Brent crude futures dipped 0.19% to $102.04 a barrel in choppy trading, after exports from the Middle East increased and the Group of Seven nations pledged to boost supplies.O/R

  • Still, the conflict between Yemen's internationally recognised government and Iran-backed Houthis kept investors on edge.

  • A survey on Monday showed British services firms reported stronger cost pressures last month as fuel prices surged due to the Middle East conflict.

  • Fuel prices have been under scrutiny owing to their impact on inflation expectations and the Bank of England's interest rate trajectory.

  • "Energy prices have risen too sharply, and a drop seems too distant a prospect for the MPC (Monetary Policy Committee) to sit on its hands and hope second-round effects fail to materialise," economists at Pantheon Macroeconomics wrote.

  • Traders currently see a nearly 95% chance of a rate hike at the next central bank meeting in November, according to data compiled by LSEG.

  • Ithaca Energy ITH.L rose 3.5% and was the top gainer on the FTSE 100 after it agreed to acquire Suncor Energy's SU.TO offshore oil assets for $842 million in upfront cash.

  • "The industry has consistently bemoaned the tinkering in the fiscal and regulatory set-up for oil and gas in the UK and this deal for Canadian assets provides a level of diversification," said AJ Bell investment director Russ Mould.

  • Investment firm 3i Group III.L hit its lowest level since late June and was last down 4.4%.

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